SAN FRANCISCO, March 12, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges investors in Cronos Group Inc. (CRON) who have suffered losses in excess of $100,000 to submit their losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
Cronos Group Inc. (CRON) Securities Class Action:
The complaint alleges that Defendants misrepresented and failed to disclose material facts regarding Cronos’ business, operational and compliance policies. According to the complaint, while touting Cronos’ revenue growth, Defendants concealed that (1) Cronos engaged in significant transactions and improperly recognized revenue from them, (2) this would foreseeably necessitate reviews that would delay the Company’s ability to timely file its periodic reports, and (3) as a result, Cronos’ public statements were materially false and misleading at all relevant times.
The market began to learn the truth on Feb. 24, 2020 when Cronos announced it would delay its Q4 and FY 2019 earnings release and conference call, previously scheduled for Feb. 27, 2020. This news drove the price of Cronos shares sharply lower that day.
Then, after the market closed on Mar. 2, 2020, Cronos announced “a continuing review by the Audit Committee of the Company’s Board of Directors, with the assistance of outside counsel and forensic accountants, of several bulk resin purchases and sales of products through the wholesale channel and the appropriateness of the recognition of revenue from those transactions.” Cronos also said it expects: (1) a material inventory write-down; (2) a material decrease in gross profit; and, (3) a material increase in operating loss. This news sent the price of Cronos shares sharply lower the next day.
“We’re focused on investors’ losses and proving Cronos misled investors about its reported revenue and inventory,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Cronos and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Cronos should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CRON@hbsslaw.com.
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Reed Kathrein, 844-916-0895